Banks are a very big part of our lives. We’re depositing our paychecks, holding our life savings, borrowing, paying bills, etc. via banks, and many times fully trusting them with the protection of our funds.
The banking system or financial institution is a network of institutions offering financial services to citizens. These institutions are responsible for running payments and transactions, offering loans, supporting their customers with the right investment plans and so on and so on, which makes it very necessary for these institutions to be well prepared in terms of operational efficiency and financial security, consumer data, data security and so on.
We have all seen big measures and initiatives taken by the government and financial institutions to digitize the banking sector, and this has had a significant effect on our lives as everyone around us are in some way or another affiliated with a financial institution.
It's amazing to see how the banking sector has a broad customer base and almost every person uses banking services and products to manage their money.
The digitalization of financial institutions has been very beneficial for many people who are tied up with their hectic daily chores. In this fast-paced world, everybody has tight schedules and people barely have any time to spare to personally visit banks, take tokens and wait in ques, so digital products and services introduced by banks have been beneficial for millions of people around the world who are stuck in their daily hustle and do not have any extra time in hand to travel to a bank and carry out their banking activities.
Video Banking is one such breakthrough in the banking sector, but how did the concept emerge?
Video banking is the next step in the digital transformation of the banking sector, but has you ever wondered where this idea has come from?
What made financial institutions think of a definition that is far from the conventional way banks operate?
In 2016, a non-profit organization Efma, which is an association of around 3,300 retail financial service companies in more than 130 countries, collaborated with Vidyo which is a leading visual provider and conducted a series of Think Thank meetings and sessions to understand the role and benefits of video banking and how it can transform the way banks and financial institutions function. Bank professionals from all around the world participated in these meetings and discussions. Participants from 24 countries came together and were active members in these meetings and discussions.
Many surveys were conducted to collect quantitative and qualitative data about the attitude of individuals towards video banking services. A thorough report was created with all important points covered which integrated primary information gathered for these sessions and feedback and suggestions from banking professional across the globe which resulted in implementing video banking systems with financial institutions all around the world.
Video banking helps in increasing customer engagement for the bank and 99 per cent of respondents from the sessions conducted believe that the quality of customer engagement is either “Important” or “Extremely Important” for the success of any business.
Advantages of Video Banking
1. Transparent Transactions
Video banking happens online and any transaction or activity done in the account is documents and a thorough database is maintained about the same too. Let’s say if you go to the bank and have a conversation with a bank representative about your funds, there is no recording or evidence about the conversation between the two of you. However, in the case of video banking, everything is recorded which helps keep transparency between the bank and the customers.
2. Location & Time Convenience
The feature of video banking can be accessed at any time and at any place. Yes, customers can connect with banking professionals even after bank working hours to complete their banking tasks. Apart from the benefit of having a bank representative assist you with all your banking needs at any given time, video banking also offers the comfort of customers being wherever they are while they connect with a bank person. This means that you could be travelling, be in your house or office or even on a vacation in a different state or country and yet have the privilege of having face to face conversations with professionals from your bank.
3. Easy to use & saves money too
In a world where almost everything is technologically driven, it is very easy to have access to the internet. Many people have smartphones, laptops, desktops etc. to help them virtually connect with a bank representative. The concept of video banking has been simplified to a beginner level so that it is viable for a large audience. Since you can access this service anywhere and anytime, it is not important for you to visit the bank. This saves a lot of money that you would otherwise spend on travelling or taking half days from the office.
4. Reduces The Scope of Fraudulent Activities
With set by the government and financial institutions for video banking, there is minimal chance of any fraudulent activities taking place with the funds and account of customers. Well planned identification and verification processes ensure that there is absolutely no scope of breach of security when it comes to custom utmost care taken of customer data and strict regulatory normsers and their money. Best technology and data safety tools have been implemented in video banking services.
5. Increases Customer Engagement
People have adopted the concept of call centre assistance for banking needs. But, it is noticed that there is still a gap. This gap is very often related to the human touch that is missing with call centre representatives. Yes, you can speak to them over the phone and they are also very skilled to provide great solutions but there is still a disconnection between the representatives and the customers. Video banking bridges that gap and enables customers to have face to face conversations with banking professionals who guide them throughout their interaction. This helps in increasing user engagement and rapport building which is very beneficial for financial institutions. On the other hand, even users are comfortable because not only can they speak to a bank representative but they can also see them over their screen in real-time.
It is very important for banks to build a rapport and connection with the customers to build the trust factor in customers. Video banking is indeed the best solution that helps financial institutions build the trust factor among their audience.
In conclusion
Customer loyalty and comfort are a top priority for banks. Money is a very sensitive subject, and people deal very carefully with money transactions to prevent some kind of mishap. Customers need to feel safe and comfortable. Video banking is a perfect solution for both consumers and financial institutions because while it allows customers to digitally communicate face-to-face with bank executives and have their questions answered quickly, it also offers banks a forum to have their executives not only chat but also see their clients while helping them. This is perfect for building customer relationships and growing brand loyalty to any company.